Now that megacap stocks have lifted the S & P 500 and Nasdaq Composite indexes to all-time highs, some stocks in the group have risen so high, so fast they may actually be due for a pullback. Nvidia and Broadcom , makers of chips used in artificial intelligence, have soared 174% and 61%, respectively, this year. Pharmaceutical developer Eli Lilly , maker of Mounjaro for Type 2 diabetes and Zepbound for obesity, is higher by 53% this year.
The semiconductor maker closed Tuesday with a market capitalization of more than $846 billion, the eighth most in the S & P 500, just ahead of Eli Lilly. Last Thursday, Broadcom surged 12% after its fiscal second quarter results beat analysts' estimates and it declared a 10-for-1 stock split . Eli Lilly is also now extremely overbought, Bespoke said, after benefiting from increased demand for its weight loss and diabetes drugs. Lilly is trading about 12.